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The Blueberry decentralized finance protocol suspends its operations after discovering an ongoing exploit, citing potential user risks.
In a statement issued on February 23, the Blueberry Protocol Foundation advised users to withdraw their funds from lending markets while measures were implemented to promptly halt the protocol, which experienced accessibility issues on its front end.
“There is an ongoing exploit on Blueberry. It appears it has been front run according to Peckshield. More details will follow shortly. The front end is also down, so if you are able to interact directly with the contracts to withdraw, please do. We are pausing the protocol as quickly as possible,” the foundation announced.
Blueberry Protocol Foundation Halts the Protocol
Despite initial challenges, Blueberry successfully halted the protocol within approximately 30 minutes, restoring functionality to its website and application, Crypto Daily reported.
Reassuring users of the security of deposited funds post-exploit, the protocol committed to providing timely updates as more information unfolded.
“The protocol has been paused. Funds currently deposited are no longer exploitable and we will update as we have more information,” Blueberry added.
Drained Funds Intercepted
Following the incident, Blueberry disclosed that all drained funds, except for the validator payment, were intercepted by c0ffeebabe.eth - Etherscan and secured in the Blueberry multi-sig wallet, Crypto Times revealed.
In addition, the team is actively collaborating with security and communication experts to recover the remaining 91 ETH, aiming for a total repayment to users. While initially 457 ETH was drained, a white hat intervention successfully rescued 366 ETH, returning it to the multi-signature wallet.
The protocol team underscored the safety of deposited funds, with only three markets affected and most funds already returned. They reiterated their commitment to fully repay affected users, emphasizing that the protocol remains paused during this process.
Photo: Tech Daily/Unsplash
